Leather Sector A delegation of more than 20 officials of the BRICS will visit Russia this month. The main objective of this visit is to seek investment and take advantage of the growing export opportunities. The 3-day visit will begin on August 26. R. Selvam, Executive Director of the Leather Export Council, said that currently India exports leather goods worth $60-80 million, but this is still less because there are tremendous opportunities in Russia. Selvam said, “We will also participate in the international fair Euro Shoes Premier Collection to be held in Moscow. We are taking a delegation with the aim of attracting investment, help of technology in product manufacturing. “
Exports declined to $14.21 million in the current financial year
R. Selvam said that there are huge export opportunities in sectors like leather clothing, goods and shoes. However, there are payment related problems in Russia due to sanctions by Western countries due to the Russia-Ukraine war, but exporters doing business in rupees can send goods. Exports of leather, leather goods and shoes increased from $ 44.84 million in 2022-23 to $ 62.48 million in 2023-24. However, during April-June in the current financial year 2024-25, exports declined to $ 14.21 million, as compared to $ 16.34 million in the same period last year. He said, “The main reason for this decline is the payment problem, which is due to banks not issuing BRC (Bank Receipt Certificate).”
India and Russia are discussing doing business in local currency
R. Selvam, Executive Director of Leather Export Council, said that sanctions have been imposed on Russia’s SEBR Bank by the US OFAC (Office of Foreign Assets Control). Due to the sanctions, many Indian banks are not issuing BRCs for payments from Russia. India and Russia are discussing doing business in local currency and reducing non-tariff barriers by Russia to boost bilateral trade. India and Russia have set a target to increase bilateral trade to US$ 100 billion by 2030.
With PTI inputs
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